Proactive corporate environmental management: A new industrial revolution

Abstract

Executive Overview Corporations in North America, Europe, Japan, and in most newly industrializing nations are embracing environmental protection as part of their international competitive strategies. For many firms, the shift to proactive environmental management is driven by pressures from governments, customers, employees, and competitors. Both consumers and investors are beginning to see more clearly the relationship between business performance and environmental quality. The trend toward proactive environmental management is being accelerated by public pressures on governments almost everywhere to assure a cleaner environment. Government regulations have become more stringent, legal liabilities for environmental damage have become more burdensome, and customers have become more demanding. But more importantly, there is growing evidence that firms that adopt proactive environmental management strategies become more efficient and competitive. In many countries, the public has become more vocal in demanding responsible environmental performance as incomes rise and education spreads. Calls for responsible corporate behavior are coming from investors, insurers, environmental interest groups, financial institutions, and international trading partners.